The Hindu Business Line : Small has potential

‘Asia is the leading continent for the creation of new billion-dollar companies and India is the right place for chief executives to look for the opportunities.’

G. Naga Sridhar

While the economic slowdown in the US and parts of Europe may be sending some tremors among young managers about a possible dip in global opportunities, there is some reason to cheer as small and medium enterprises in India offer an excellent opportunity for growth.

This is the perception of David G. Thomson, a US-based management expert and author of the bestseller Blueprint to a Billion: 7 Essentials to Achieve Exponential Growth.

“Asia is the leading continent in the world for the creation of new billion-dollar companies and India is the right place for managers/chief executives to look for the opportunities earnestly,” he told The New Manager recently.

For success, management principles should be combined with some “simple truths” such as creation of additional value in processes so as to benefit the customer; focusing on high growth market segments; forging ‘big brother alliances’; and ensuring exponential returns to investors and stakeholders, Thomson said.

“In addition, managers need to focus on two vital aspects — providing inside-outside leadership and ensuring the presence of experts on the board of the company or any other decision-making platform,” he added.

On the applicability of his views in the present scenario, with doubts about corporate profitability globally, Thomson pointed out that the modern history of management/financial principles points to a “unique pattern”.

“A keen observer of global economic development will not fail to notice a four-year bull-bear market cycle and India is ideally positioned to take advantage of the global scenario,” he explained. India may be more resilient to the external ‘shocks’ backed by world-class management education.

Commenting on possible sectors in which the ‘road to a billion dollars’ is clearer, the expert said that manufacturing industries/materials production and sectors associated with consumerism are ideal. “Though the energy sector appears lucrative in India, it needs to catch up at the middle and lower level enterprises,” he observed.

These suggestions also form the crux of his book, which has sold over a million copies till date.

“These simple truths are actually tested by me. I was not born a management expert and spent most of my life as an executive in different companies in the US. When I put the practices adopted in writing, I have suddenly become a writer on management,” he said .